Crypto stocks on the up ever since Fed rate cut last week

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Last Updated on 23 September 2024 by CryptoTips.eu

Last week’s Federal Reserve interest rate cut, coupled with the knowledge that the Bank of Japan will not raise rates in the near future, is good news for Bitcoin, but also for crypto-related stocks. Marathon Digital, Cleanspark, Riot Platforms, Coinbase and Microstrategy have all had quite different 2024s. Will they all go higher from now until the end of the year?

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Ups and downs

So far, 2024 has been a story of major ups and downs for crypto-related stocks. Crypto mining companies like Marathon Digital, Cleanspark and Riot Platforms have actually had a pretty bad year as investors wonder how their business models will adapt to the halving.

All crypto mining companies had to make large investments in better and faster equipment as the reward they receive for solving a crypto calculation is fewer Bitcoins than before in this post-halving period. The good news is that the price of Bitcoin has been above $50,000 for several months. Hopefully for them it stays that way.

Coinbase is doing slightly better, especially in the first half of the year, when the Bitcoin ETFs were launched and it announced a direct partnership with BlackRock. The Coinbase share which was launched with much fanfare on the US exchanges back in 2021 has never since achieved the value of that opening day. However some fans thought that it was finally on its way again during the first six months of this year. This summer was more difficult, as Bitcoin moved mostly sideways. Ever since the Fed’s announcement this week, things are improving again. Could be a very nice end to the year for Coinbase’s stock.

Microstrategy

Finally, there is of course Microstrategy, whose stock is already up more than 100% since the beginning of the year.

Michael Saylor’s fintech investment company has by now become one of the largest Bitcoin whales on earth. Saylor has them purchasing Bitcoin whenever possible.

Because of this, most of the company’s quarterly reports and profits depend on the price of Bitcoin, and if the largest digital currency were to hit a new all-time high before year-end, Microstrategy’s stock price likely will too.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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